Monday, June 24, 2019 / by Vanessa Saunders
In the Hudson Valley, the number of buyers searching for their dream homes outnumbers the number of homes for sale. This has led to a competitive marketplace where buyers often need to stand out. One way to show that you are serious about buying your dream home is to get pre-approved for a mortgage before starting your search.
Even if you are not in an incredibly competitive market, understanding your budget will give you the confidence of knowing whether or not your dream home is within your reach.
Freddie Mac lays out the advantages of pre-approval in the ‘My Home’ section of their website:
“It’s highly recommended that you work with your lender to get pre-approved before you begin house hunting. Pre-approval will tell you how much home you can afford and can help you move faster, and with greater confidence, in competitive markets.”
One of the many advantages of working with a Global Property Systems Local Area Expert is th ...
Tuesday, June 18, 2019 / by Vanessa Saunders
When buying a home today, why is there so much paperwork mandated by the lenders for a mortgage loan application? It seems like they need to know everything about you. Furthermore, it requires three separate sources to validate each and every entry on the application form. Many buyers are being told by friends and family that the process was a hundred times easier when they bought their home ten to twenty years ago.
There are two very good reasons that the loan process is much more onerous on today’s buyer than perhaps any other time in history.
1. The government has set new guidelines that now demand that the bank proves beyond any doubt that you are indeed capable of paying the mortgage.
During the run-up to the housing crisis, many people ‘qualified’ for mortgages that they could never pay back. This led to millions of families losing their home. The government wants to make sure this can’t happen again.
2. The banks don’t ...
Thursday, June 06, 2019 / by Vanessa Saunders
There are a lot of down sides to the trade wars recently declared by President Trump on China and Mexico. But one unexpected benefit affects people shopping for homes: interest rates are going down. Barry Goldenberg, Senior Loan Originator for Luxury Mortgage explains, "Mortgage rates loosely follow the yield of the 10 year treasury note, which has dropped steadily over the past month and a half. This is due in part to instability in the economy caused by worries over the recent tariffs on Chinese and Mexican imports."
Mortgage rates are dropping at just the right time for home buyers who are in the market to purchase a home. Whether its first time home buyers or buyers who are looking to trade up to a larger house this summer, the drop in interest rates couldn’t have come at a more opportune time. The average rate for a 30-year mortgage dropped for a fifth straight week to 3.99 percent, which is the lowest since January 2018. Home buyers are naturally sensitiv ...
Thursday, May 09, 2019 / by Vanessa Saunders
We wrote yesterday about how Hudson Valley home buyers could get a mortgage with less than 2% down. There are many programs available that let you put down as little as 3%. Those who have served our country could qualify for a Veterans Affairs Home Loan (VA) without needing a down payment. For some buyers who can't afford or can't save the 20% down to get a mortgage, this is welcome information.
What we neglected to say was, there are some significant benefits for those of you who CAN put down 20% on a home. Today, we want to talk about four reasons why putting 20% down is a good plan, if you can afford it.
1. Your interest rate will be lower.
Putting down a 20% down payment vs. a 3-5% down payment shows your lender/bank that you are more financially stable, thus a good credit risk. The more confident your bank is in your credit score and your ability to pay your loan, the lower the rate they will be willing to give you.
2. You’ll end up paying less for your home. ...
Wednesday, May 08, 2019 / by Vanessa Saunders
If you're interested in buying a house in the Hudson Valley but don't have 20% of the cost of a property to put down to qualify for a mortgage, don't worry. According to the National Association of REALTORS, "There are thousands of down payment assistance programs around the country and many of them offer funds to relatively high-earning households, in some cases those earning as high as 200 percent of the area median income." More often than not lenders and banks will require private mortgage insurance (PMI) for home buyers when making less than 20% down payment.
That being said, buyers should realize that that making a low down payment will not likely result in a higher interest rate. They should also be aware that PMI increases mortgage costs with little benefit to the buyer. Private mortgage insurance is required by a lender to protect THEM, not the buyer if anything happens that compromises repayment of the loan.
PMI is a form of mortgage insurance that's often required of les ...